Lawmakers from South Korea’s ruling party have put forward a new bill that requires all public officials and candidates to disclose their cryptocurrency holdings.
The proposal, unveiled last Friday, aims to expand the reporting scope of assets to include virtual assets, such as cryptocurrencies. The move is intended to prevent public officials from using their positions to accumulate wealth improperly or conceal assets.
According to Lee Man-hee, a right-wing lawmaker who proposed the amendment to the Public Official Ethics Act, including virtual assets in the reporting requirements is necessary. Currently, the law only mandates the disclosure of assets like cash, stocks, and bonds exceeding 10 million Korean won (equivalent to US$7,572), with cryptocurrencies and other virtual assets exempt from reporting.
The proposed bill suggests that cryptocurrency holdings should be reported regardless of their value. Additionally, it recommends imposing a limit on the amount of investment an official involved in the crypto sector can make.
The introduction of this bill follows an ongoing scandal involving lawmaker Kim Nam-kuk, a former member of the opposing Democratic Party. Kim Nam-kuk is currently under investigation by local prosecutors for various violations, including campaign finance misconduct, tax evasion, and concealing criminal proceeds related to his undisclosed crypto possessions and transactions, as reported by local media outlet Chosun Ilbo.
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South Korean investors constitute a significant portion of the global cryptocurrency market, as highlighted by the crypto data platform Xangle. The Korean won ranks as the third most-utilized currency in Bitcoin transactions, trailing behind the U.S. dollar and the Japanese yen.
Since the collapse of Terra-Luna last year, South Korea has been diligently developing a legal framework to ensure transparency and fair trading practices in the local cryptocurrency market. These efforts seek to enhance regulation and foster a secure environment for crypto-related activities.
